The Tradetech Daily

Morgan Stanley MS POOL and MS Trajectory Cross

Morgan Stanley MS POOL and MS Trajectory Cross

MS POOL is Morgan Stanley’s dark, internal liquidity pool and MS Trajectory Cross is the firm’s enhanced liquidity pool that discourages short-term trading.

Functionality and order types

MS POOL accepts day orders, including market, limit
and pegged orders, does not accept immediate or cancel (IOC) orders, and is
monitored for simulated IOC orders. In addition, MS POOL does not use indications
of interest (IOIs) to solicit orders to the pool.

MS Trajectory Cross crosses orders at the volume weighted
average price over selected time intervals based on the underlying security.

Access and participation

All Morgan Stanley clients, traders and sales
traders are eligible to access MS POOL. The platform can be accessed through
the firm’s smart order router, SORT, benchmark execution strategies, and
liquidity-seeking algorithms NightOwl and NightVision, which can also access MS
Trajectory Cross.

Instruments traded

All national market system equity securities are
traded in MS POOL and MS Trajectory Cross in the US and in Europe both pools
support the trading of equity securities for most major European electronic

Order protection

The firm
conducts regular evaluations of the performance of algorithms, dark pools and
systems, and employs a dedicated group of people who regularly review the
quality of executions. The firm prevents gaming in MS POOL through measures
such as restricting order types, rejecting IOCs, simulated IOCs, and not
sending IOIs.

Connectivity/sharing agreements

Morgan Stanley has arrangements with other
broker-dealer dark pools to provide reciprocal access to each other’s

The firm provides real-time execution specific information
back to MS POOL participants and provides quarterly volume reports in the US to
the regulator.